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Investing.com -- InPost stock dropped by 5% on Thursday after Allegro (WA:ALEP) reported its FY24 results, which indicated a supportive outlook for FY25 with Gross Merchandise Volume (GMV) growth predictions around the low teens, compared to 11% in FY24.
Despite these forecasts, the company’s decision to ramp up investments in lockers as it prepares for a potential new contract post-2027 has raised questions about its ability to sway consumer preferences in a competitive market.
Allegro’s increased focus on expanding its locker investments is seen as a strategic move to build flexibility ahead of the expiration of its current agreement with InPost in late 2027.
Barclays (LON:BARC) analysts commented on the situation, stating, "We assume these moves by Allegro are to give optionality when the current agreement in place between InPost and Allegro expires in late 2027. We continue to believe that it is the consumer that decides the preferred delivery option, and InPost is and will be a higher density and open network, i.e., a one-stop shop for all the online orders, not just Allegro, with the best quality.
Concerns might rise beyond 2027 if Allegro will be able to build a large enough network and de-prioritize InPost at the checkout, which is not our base case as InPost continues to represent a very large part of the market."
The ability to influence consumer delivery preferences remains a key challenge for the company, as it contemplates a future where it may need to rely less on InPost’s services.
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